Updated about 10 years ago on . Most recent reply
Looking for some feedback on this first deal
Currently under contract on first deal. Looks like it should all work out swimmingly to me. What do you guys think?
2 bedroom, 1 bath, townhouse in Reading, Pa.
Buying for 13,000.
Paying $6500 cash and owner financing remaining $6500 over 2 years at 9% interest ($297 monthly)
Comparable houses in area average 15k-30k
Needs about 6k in repairs to get up to comfortable standard. (Replace part of roof, install new furnace, some electrical work, and light cosmetics. Already have estimates from contractors)
Once purchased, will take out equity loan for 6k and and use for repairs. Already approved from bank to do this. Will pay off at 6% interest over 7 years.
Will rent for $550 once complete.
Taxes: $900yr, Water: $600yr, Property management: 10% (all ready to be in place when house is done)
Won't be making much until it is paid off after 2 years. House is not in the best neighborhood but I am familiar with the area and will be living close by.
Thoughts?